4 ms·

None of those 3 examples are commodities.

by DKnoll 10y ago

Retric 10y ago
I think that's arguable but how about: hardwood, crab meat, wolf pelts. Basically, anything with a finite supply and limited ability to mass produce.
- DKnoll 10y ago
  It's not at all arguable, by definition each instance of a commodity is equivalent. Each CEO's value is not equivalent, nor is the music on any CD or each degree program available at every university.
  - Retric 10y ago
    Every cow is different that does not prevent them from being treated as a commodity. "In economics, a commodity is a marketable item produced to satisfy wants or needs. Often the item is fungible. Economic commodities comprise goods and services. https://en.wikipedia.org/wiki/Commodity https://en.wikipedia.org/wiki/Commodity Staff ex:Nurses are generally treated as a commodity in many economic models. Music/Books/Movies can also be treated like this. Sure, as a consumer I might pick A over B, but movie theaters don't individually price movies based on quality.
    - DKnoll 10y ago
      They can be treated as a commodity as they are graded on value. How would a commodity market work if each instance of the commodity had a different value? Both live steers, and their resulting leather, beef and other byproducts are sold based upon weight and/or grade. For example, 'a cow' is not a commodity... but a grade 3 live steer is. Movie theatres do not price films based upon quality, but the distributors certainly do (I managed a movie theatre). You cannot commoditise a movie ticket, each theatre provides different facility and presentation quality.
      - Retric 10y ago
        Sure, cattle auctions sell the animal for an individual price based on health, weight, body size etc. At the extreme end animals can sell for 150,000+ if they seem to have good DNA for breeding. http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty_queen_sold_in_sy.html http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty... Even if there just being butchered people make bids based on expected yields. This gets back to meat grades etc. However, animals are also sold in bulk without individual prices.

None of those 3 examples are commodities.

by DKnoll 10y ago

None of those 3 examples are commodities.

I think that's arguable but how about: hardwood, crab meat, wolf pelts. Basically, anything with a finite supply and limited ability to mass produce.

DKnoll 10y ago
It's not at all arguable, by definition each instance of a commodity is equivalent. Each CEO's value is not equivalent, nor is the music on any CD or each degree program available at every university.
- Retric 10y ago
  Every cow is different that does not prevent them from being treated as a commodity. "In economics, a commodity is a marketable item produced to satisfy wants or needs. Often the item is fungible. Economic commodities comprise goods and services. https://en.wikipedia.org/wiki/Commodity https://en.wikipedia.org/wiki/Commodity Staff ex:Nurses are generally treated as a commodity in many economic models. Music/Books/Movies can also be treated like this. Sure, as a consumer I might pick A over B, but movie theaters don't individually price movies based on quality.
  - DKnoll 10y ago
    They can be treated as a commodity as they are graded on value. How would a commodity market work if each instance of the commodity had a different value? Both live steers, and their resulting leather, beef and other byproducts are sold based upon weight and/or grade. For example, 'a cow' is not a commodity... but a grade 3 live steer is. Movie theatres do not price films based upon quality, but the distributors certainly do (I managed a movie theatre). You cannot commoditise a movie ticket, each theatre provides different facility and presentation quality.
    - Retric 10y ago
      Sure, cattle auctions sell the animal for an individual price based on health, weight, body size etc. At the extreme end animals can sell for 150,000+ if they seem to have good DNA for breeding. http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty_queen_sold_in_sy.html http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty... Even if there just being butchered people make bids based on expected yields. This gets back to meat grades etc. However, animals are also sold in bulk without individual prices.